This is the assessment of Nguyen Tuan, Head of the Commerce Department at the PetroVietnam Technical Services Corporation (PTSC), during a discussion titled “Amendments to the Electricity Law: Legal Gaps That Need to Be Filled in Line with Resolution 55-NQ/TW and Conclusion 76-KL/TW,” held on October 16.

Currently, the draft law includes 130 provisions, but the section on offshore wind power contains only 9 provisions, which offer only general and vague guidelines.

PetroVietnam and PTSC have proposed 17 issues aimed at clarifying development directions and policies. However, only 4 of these have been considered. The remaining unresolved issues include: development directions and models for various stages; formalizing PetroVietnam's role in line with Conclusion 76-KL/TW; unifying government management and oversight roles; synchronizing land allocation with sea areas; and creating clear mechanisms for offshore wind power exports.

This lack of clarity in the process and procedures for offshore wind power, coupled with the absence of a development mechanism, has created a legal gap for offshore wind power exports. Moreover, it does not provide the necessary leverage for investment in developing a sustainable offshore wind supply chain in Vietnam.

According to Tuan, offshore wind power projects are a new field in Vietnam and urgently need a pilot mechanism. As such, PTSC recommends that the draft law empower the government and the Prime Minister to decide on the phased development of the sector, establish criteria for investor selection, and outline the approval process for investment policies. Furthermore, pilot projects for offshore wind power serving both domestic needs and exports should be developed.

PTSC representatives are concerned about auctioning offshore wind power projects at a time when the market is still in its infancy. They suggest that this energy sector be developed in phases, with different policies tailored to each stage.

Additionally, given the high cost of offshore wind power investments, Tuan recommends breakthrough incentives for investors. Without these incentives, the market may not develop, leading to investor withdrawal. “No one is willing to invest without state-backed incentives,” Tuan emphasized.

“For example, the state could offer exemptions or reductions on seabed usage fees. The large area required for offshore wind farms makes seabed usage fees a significant burden for businesses. Additionally, corporate income taxes should be reconsidered for the entire project lifecycle, as we have tax incentives for foreign investors, so similar incentives should be applied to offshore wind projects,” Tuan suggested.

Discussing challenges for offshore wind power, Dr. Du Van Toan from the Institute of Marine and Island Environment, Ministry of Natural Resources and Environment, highlighted that offshore wind in Vietnam holds great potential, particularly in the South-Central region. However, securing areas for surveying and investment is becoming increasingly difficult.

According to Dr. Toan, the Ministry of Industry and Trade has identified four main challenges: unclear authority over the allocation of sea areas, approval for organizations to use sea areas for activities such as measurement, observation, investigation, and surveys for offshore wind power projects; the lack of approval for the national marine spatial planning, which hampers the implementation of Power Plan VIII; unclear authority for investment policy approval; and unclear market access conditions for foreign investors in the offshore wind sector. He noted that the legal framework needs to address these issues, especially regarding licensing and measurement standards.

Given these challenges, Dr. Toan proposed that a pilot mechanism be introduced to support offshore wind projects. He suggested that the National Assembly issue a resolution to develop offshore wind power on a pilot scale of 1,000 MW to 2,000 MW, with clear timelines and pricing structures.

Regarding survey areas and locations, Dr. Toan recommended piloting projects in Quang Ninh or Binh Thuan - two regions with favorable wind conditions and convenient maritime access, which could attract partners. He also mentioned the need for pilot mechanisms related to preliminary surveys, timelines, land use, funding, and the process for management, inspection, and evaluation.

Tam An